GR 164820; (March, 2007) (Digest)
G.R. No. 164820 March 28, 2007
Victory Liner, Inc. vs. Pablo M. Race
FACTS
Respondent Pablo Race was employed as a bus driver by petitioner Victory Liner in June 1993. On August 24, 1994, while driving his assigned bus, he was involved in an accident that resulted in a fractured left leg, requiring hospitalization and extended treatment. The petitioner shouldered his medical expenses. In January 1998, after recovering, Race reported for work but was informed he was considered resigned and was offered monetary consideration, which he refused. He subsequently filed a complaint for illegal dismissal and monetary claims on September 1, 1999.
The Labor Arbiter dismissed the complaint, ruling the action had prescribed, as the four-year prescriptive period for illegal dismissal commenced from the 1994 accident. The NLRC reversed, finding illegal dismissal in 1998 and ordering reinstatement with backwages. The Court of Appeals affirmed the NLRC decision.
ISSUE
Whether the complaint for illegal dismissal filed in 1999 had prescribed.
RULING
The Supreme Court ruled the complaint had not prescribed and affirmed the finding of illegal dismissal. The prescriptive period for illegal dismissal is four years from the time the cause of action accrues. The cause of action accrues from the date of dismissal, not from the date of the employee’s absence due to injury.
The Court held that Race’s absence from 1994 to 1998 was due to a work-related injury and subsequent medical treatment. His employment was not terminated during this period; the petitioner continued to support his medical needs. The dismissal occurred only in January 1998 when he was expressly informed he was considered resigned upon reporting for work. Therefore, the four-year prescriptive period commenced in January 1998, making the September 1999 complaint timely.
The Court rejected the petitioner’s claim that Race abandoned his job, noting he reported for work upon recovery. The offer of separation pay in 1998 was an admission that employment was being terminated at that time, not in 1994. Consequently, the dismissal was illegal for lack of just or authorized cause and due process. The Court upheld the award of backwages and, in lieu of reinstatement, separation pay.